Are your investment goals out of reach as a “late bloomer” investor? Sure, in this business, time is of the essence. The sooner you can get started, the better. That doesn’t mean you’re disqualified from real estate investment success if you don’t start until your forties, fifties, or beyond!

We can’t change the past, but we can harness our experience and resources to establish passive wealth at any age.

3 Advantages That Help Late Investors Catch Up

Time significantly benefits younger investors – but that doesn’t mean you don’t gain some advantages with age.

#1 – Business Acumen

Older investors likely have decades of career experience under their belts. Not only does this business acumen come in handy as a real estate investor, but it sets the stage for solid fundamentals. Generally speaking, more experienced people are better at gauging their risk tolerance, prioritizing due diligence, and handling their finances.

#2 – Access to Resources

Trying to invest in your twenties isn’t easy, mostly because you don’t have access to many resources unless you have someone to help out. Older investors have had time to build up savings and IRAs. They may already own homes and be familiar with the process. 

#3 – Professional Connections

Finally, older investors are more likely to have beneficial professional connections. They can find investment opportunities through the grapevine and connect with like-minded peers. 

The Latecomer’s Essential Principles for Successful SFR Investing 

#1 – Aim for a hands-off experience

Slowing down is a natural part of aging. While a younger investor may be gung-ho about handling their own property management, it’s less realistic the older you get. Limited physical ability, distance, and career demands are all reasons to utilize turnkey investing. Turnkey properties are already renovated and rented out. This reduces the time and effort needed to start generating income.

Work with reputable turnkey providers who handle property management. Ideally, you won’t have to find residents, handle disputes, or perform maintenance and repair tasks.

Further Reading: 5 Reasons the Turnkey Real Estate Model is Worth Your Time

#2 – Think about cash flow first.

Prioritize properties that provide immediate positive cash flow rather than speculative appreciation. This means looking at markets with a history of high rental demand and price stability. You’re in less position to recover from financial loss simply because of time constraints. Be prudent and keep your focus on reliable markets and cash flow.

This isn’t the time to chase quick trends.

Remember that SFR investing benefits you in a variety of ways. There’s cash flow, appreciation, and tax benefits. You may want to emphasize different benefits according to your goals and time constraints, but they all matter.

#3 – Utilize your experience and assets.

Utilize existing professional and personal networks to identify potential investment opportunities. Think about your social circles and the trusted professionals you work with. You likely already have a financial advisor you know and trust or mentors you can turn to. Talk to them about your investing aspirations, especially if they invest in real estate, too.

Use accumulated knowledge and life experience to make informed decisions and avoid common pitfalls. Even if you haven’t done this before, you’ve been around the block!

Lastly, consider your existing assets. What resources can you tap into to make your real estate investing ambitions come to fruition? (This is where your financial advisor can help you move things around to better accomplish your goals!)

#4 – Stay on top of estate planning.

What’s going to happen when you’re gone? This is a question all investors must answer. As a late starter, you may already have a will and estate structures in place. Don’t let new investments and assets slip through the cracks! Develop a clear plan for managing and passing on your investments as part of your estate planning. Consider creating a trust or other legal structures to ensure your investments are handled according to your wishes.

Remember, estate planning is an ongoing process, not a one-time task. Be sure beneficiaries are updated and you understand the tax implications of your succession plans. If you can avoid things like probate, you want to…for your family’s sake!

At the end of the day, investors absolutely benefit when they can start early. That doesn’t mean it isn’t worth your while to start now, regardless of age or experience. You can still reach your financial goals and benefit from SFR investing.

The expert team at REI Nation is equipped to help you achieve your investment goals. Consult with an advisor today!